EUR 100.00 For Business Accounts Only

IBERIAN DAILY 22 NOVEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, NATURGY.

The Ibex at 9,840 points
Slight profit taking in European stock markets despite the new tightening in debt curves, currently paying closer attention to the latest business results. Thus, in the STOXX 600 defensive sectors such as Food and Household ended with the highest gains, whereas cyclical ones such as Real Estate, Autos and Travel&Leisure ended with the biggest drops (>-1.0%). On the macro side, in Spain, S&P requests the withdrawal of the anti-crisis package and the revision of the inflation-linked pension update to control the deficit. This follows the EC’s request to update the budgets sent in October, considering that the fiscal situation for 2024 is very challenging given the high deficit and debt. From the ECB, C. Lagarde warned about the hasty conclusions on inflation and insisted that rates could remain stable over the coming months. In the US, October’s pending home sales fell more than expected, whereas the Chicago Fed index deteriorated further (in negative territory) in October. The Fed meeting minutes insist on making any additional rate hike subject to inflation trends, where most see rising risks and show a consensus on the need to maintain a restrictive policy. On the geopolitical front, B. Netanyahu and the leader of Hamas, I. Haniyeh, have signed a ceasefire agreement (initially for 4 days) in Gaza that would release around 50 Israeli civilian hostages as well as Palestinian prisoners. In US Results, Nvidia, Best Buy and Medtronic beat expectations, with Lowe’s and HP in line.
What we expect for today
European stock markets would open flat without relevant drivers. Currently, S&P futures are down -0.10% (the S&P 500 ended +0.09% higher vs. the European closing bell). Volatility in the US fell (VIX 13.35). Asian stock markets are mixed (China’s CSI 300 -0.82%, Japan’s Nikkei +0.29%).
Today in the euro zone we will learn November’s consumer confidence, in the US October’s durable goods orders and in Mexico September’s retail sales.